Revision as of 20:35, 21 September 2015

For many years, E. Pihl & Søn A/S was one of the most international and well-known contractors in the world. In its 126 years of existence, the company completed projects in more than 60 countries as it developed from being a small masonry company in Copenhagen, Denmark to a multi-national contractor with a turnover of 6.5 billion Danish kroner (1 billion USD). The long history and great productivity of the company were some of the reasons that it took most people in the industry by a surprise, when E. Pihl & Søn A/S on the 26th of August 2013 was declared bankrupt.

To provide an insight on the significance of the case of E. Pihl & Søn A/S in the aspect of project and portfolio management in construction, this study will briefly go through the history of the company, including the great expansions in the later years. The business and management strategies will be elaborated and analyzed to clarify the challenges the company faced through the years and how they were handled, and finally a conclusion summarizing the reasons for E. Pihl & Søn A/S’ bankruptcy will be presented together with implications from the case that can hopefully contribute to other companies not suffering the same fate.

The main source for the information used in this article is the acknowledged book “Sørens Saga” ^[1] written by journalist Poul Høegh Østergaard and published in 2014.

References

1. ↑ Østergaard, Poul Høegh (2014); Sørens Saga. Copenhagen, Denmark. Gyldendal Business.

Annotated Bibliography

Østergaard, Poul Høegh (2014); Sørens Saga. Copenhagen, Denmark: Gyldendal Business.

The book “Sørens Saga” is written by journalist within the construction sector Poul Høegh Østergaard, who since the 1980s has been working as a reporter and communicator in the industry and thus possesses a unique knowledge in this field. “Sørens Saga” was initially meant to be a biography of the owner and CEO of E. Pihl & Søn A/S for 42 years Søren Langvad, but with the crisis in the company and Søren’s death, Poul Høegh Østergaard changed the focus so that it became a more general story about the history and management of Pihl. The book was given good reviews when it was published in 2014. In one review, the reviewer (another journalist in the construction field) is claiming that the book contains enough insights and reflections on the construction industry and the management hereof that it should be mandatory in the curriculum for all civil engineering educations ^[1]